According to Weber’s weekly report, VLCC (very large crude carrier) rates lacked a clear direction in week 17 with positive and negative pressure. In the Middle East market, 27 fixtures were reported in week 17—the week ending April 27. The fixtures were 11 less than the previous week.
According to the same report, the VLCC rates for the route from the Arabian Gulf to China dropped from $7,499 per day on April 20 to $6,844 per day on April 27. The average rate for all of the VLCC routes dropped from $9,231 per day on April 20 to $8,232 per day on April 27. The current rates are 63% lower year-over-year. The rates are significantly lower than the rates companies achieved in 4Q17. In 4Q17, Euronav (EURN) earned a spot rate of $25,889 per day for its VLCCs. During the same period, DHT Holdings (DHT) earned a spot rate of $19,600 per day for its VLCCs.
According to Weber’s weekly report, the rates in the Suezmax market rose in week 17 due to strong demand and declining vessel availability. In the West Africa market, the fixture tally rose 62% week-over-week to 13 fixtures.
The Suezmax rates on the route from West Africa to the United Kingdom rose from $2,772 per day on April 20 to $8,339 per day on April 27. The average Suezmax rates rose to $9,969 per day on April 27 from $5,202 per day on April 20. Nordic American Tankers (NAT) only has Suezmax vessels in its fleet. For Teekay Tankers (TNK), 50% of its fleet consists of Suezmax vessels, while 43% of Tsakos Energy Navigation’s (TNP) crude tanker fleet is Suezmax vessels.
The rate on the Caribbean route rose from $6,179 per day on April 20 to $9,969 per day on April 27.